Hi Keith: Yes, I am doing fine. To answer your question, I'd like for you to recall the many times I've written about my style of investing.
I play the long side. I focus and maximize my attention on buying calls and selling them for profit. I am not all over the radar screen doing this, doing that, buying this, buying that, like so many on here do. If I had the time, I'd play both long and short. I use to do that. Right now, I simply don't have the time, so I focus on one side to maximize my efforts.
Think back at all my postings where I've listed my positions in the last year. I suspect that I have not had positions in more than 10 different stocks, if that many, in an entire year. I am not all over the radar screen constantly searching for the next big deal. I don't have to. I keep my selections few in number so I can learn them best, that way I can be smarter about when to enter or close a position in them.
Just because we are in a bear market doesn't mean you can't make money going long. Small swings in stock price can produce very nice returns in options due to leverage as you know. Look at January. A super month for me. Some of my calls had superior returns, some were doubles. You know what January was like, go do the math on some calls and you'll see what returns were like.
Heck, look at last week! Last week, I mentioned here on Sunday the positions I would watch for the week. I entered them early in the week, Monday I think, and I was out on the bump Thursday. Had a couple of doubles. Not bad, 100% return in 3 days. I was in, then out.
So this notion that I can't make money going long in this market is bullshit. The notion that a good options trader going long in this market is constantly getting stopped out into bankruptcy is bullshit. Good ones don't.
Yes, I do get stopped out at times. That is smart. Preserve capital is rule 1 as you know. What I do not do is ride a position into the dirt like some on here do. I'll be blunt, that's stupid! Although I do get stopped out at times, my winners far out number my losers. That's what matters.
I am not always in the market, either. I don't feel like I have to always be trading. I am actually very selective with the positions I enter. I am not compulsive the way some on here are. Timing is critical.
I use great patience before entering a position. Timing is critical to assure you are on the right side of an options play. When I decide to execute, I do so using extreme discipline to carry out the entry and exit. Again, even in this bear market, there are swings that allow for the long side to make money. I guess most would call them swing trades, not day trading.
My style is not a get rich quick scheme, either. I've said this before, that I believe it takes at least 3 years for someone to become competent trading options. Too many on here get burned doing what I do because they don't have the experience, patience, and discipline, plus they are too compulsive and emotional to execute properly.
Each person must establish an investment style that works for them, especially considering the risk factor. I have found a system that works for me. It's not for everybody. It's not an elaborate scheme. It's really very simple. It's risky as hell but I can assume the risk. I've stated on the Porch over and over, "don't do what I do." I spend enormous amounts of time studying. It's not easy. My style requires extreme discipline to execution, and focusing very narrowly on one method. I've written on that a whole lot before.
To answer your question on JDSU, I've not changed my belief that when the Naz starts to recover, JDSU will outperform the Naz. So, I'm still going to invest in it. After last week and selling into the bump on Thursday, I am currently 100% cash, so I have no JDSU positions. I am going to wait and see what the Naz does before taking any new positions. I may even do so today, don't know. Patience. When I do, I'll be looking at JDSU Sept ITM calls. 6 months out.
Late. Must run.
Good luck.
RR |
